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HUD-1 Settlement Statement - What's In Page Two

Make sure you understand the HUD-1 settlement statement before closing on a home. Use this quick guide to learn what's covered on page two of the HUD-1.

As discussed in the previous page which outlined page one of the HUD-1 Settlement Statement, this form is one of the most important documents regarding the close of a real estate contract. The settlement form is required by the Real Estate Settlement Procedures Act (RESPA) to be used in any transaction that involve federally related mortgage loans. However, the HUD-1 is used in the vast majority of transactions, including cash closings.

What's in the Page 2 of the HUD-1

Page two of the HUD-1 Settlement Statement details the settlement charges that were summarized in the first page. On the far right hand side of the page there are two columns. The one of the left is where fees paid from the borrower's funds at settlement are listed, and the column on the right is where fees paid from the seller's funds at settlement are listed.

The 700's - Total Real Estate Broker Fees

Lines 701-702 identify the amount of the commission and who it is payable to.

Line 703 Identifies total commission paid at settlement and how much will be paid out of the borrower's funds and how much will be paid out of the seller's funds.;

The 800's - Items Payable in Connection with the Loan

Line 801 specifies the origination charge, also listed on the GFE as #1.

Line 802 specifies credit or points charged for a certain interest rate, also listed on the GFE as #2.

Line 803 is the adjusted origination charges which is the sum of lines 801 and 802, also listed on the GFE as A.

Line 804 is the appraisal fee, also listed on the GFE in block #3 .

Line 805 is the credit report fee, also listed on the GFE in block #3 .

Line 806 is the tax service fee which is paid to the tax service provide, also listed on the GFE in block #3 .

Line 807 is the fee for the flood certificate, also listed on the GFE in block #3 .

Lines 808-811 are reserved for any other additional third party services required by the lender, this includes FHA or VA charges.

The 900's - Items Required by Lender to be Paid in Advance

Line 901 listed the daily interest charge information, with the start and finish date specified as well as the amount per day and total, also listed on the GFE as #10.

Line 902 specifies the up-front mortgage insurance premium fee if one is being charged. Also listed in block 3 of the GFE.

Line 903 shows the charges for homeowners insurance that are being paid up-front before closing, also specifying the time span covered in years. Lenders will typically require that the borrower produce a pre-paid insurance policy prior to closing. This is also listed on the GFE as #11.

The 1000's - Reserves Deposited with Lender

Line 1001 lists the amount of the initial deposit for the escrow account, also listed on the GFE as #9.

Line 1002 lists the homeowners insurance amount that will be put in the escrow account for future payment, specifying the number of months and the dollar amount per month.

Line1003 lists the mortgage insurance amount that will be put in the escrow account for future payment, specifying the number of months and the dollar amount per month.

Line 1004 lists the property tax amount that will be put in the escrow account for future payment, specifying the number of months and the dollar amount per month.

Lines 1005-1006 are for miscellaneous charges.

Line 1007 is the aggregate adjustment. This is put in place to ensure the lender is collecting only the max amount the law permits.

The 1100's - Title Charges

Line 1101lists the fees for titles services and the lender's title insurance, also listed on the GFE as #4.

Line 1102 is the settlement or closing fee. This is included if the title company performing the close is different the company that provided the title insurance.

Line 1103 is the owner's title insurance fee, if owner's title insurance was bought, also listed on the GFE as #5.

Line 1104 is the lender's title insurance policy fee which is included in line 1101.

Line 1105 specifies the policy limit for the lender's title insurance. Typically it's just enough to cover the cost of the loan.

Line 1106 specifies the policy limit for the owner's title insurance. Typically the limit covers the amount paid for the property.

Line 1007 specifies the title insurance agent's portion of the title insurance premium.

Line 1008 specifies the underwriter's portion of the title insurance premium.

The 1200's - Government Recording and Transfer Charges

Line 1201 lists the total amount to be paid by the borrower for government recording charges, also listed on the GFE as #7.

Line 1202 lists the specific items covered in the government recording charges.

Line 1203 specifies the fees associated with transfer taxes, also listed on the GFE as #8.

Lines 1204-1205 specify the items included in the cost of the transfer taxes.

Line 1206 is for any additional fees related to transfer or recording.

The 1300's - Additional Settlement Charges

Line 1301 is the total of all the required services that the borrower can shop for, also listed on the GFE as #6. These also include items the borrower elects to get such as a home warranty.

Lines 1302-1306 specify the items included in line 1301 and their amounts.

Line 1400 - the Total Settlement Charges

Line 1400 lists the total settlement charges for both the borrower and seller. These totals are used in line 103 and line 502.